The retail inflation, measured by the Consumer Price Index (CPI), slightly rose to 4.48 per cent in October. Separately, the factory output, measured in terms of Index of Industrial Production (IIP), grew by 3.1 per cent in September. Food inflation picked up to 0.85 per cent in October from 0.68 per cent a month ago with a rise in prices of vegetables.
The inflation print for October this year, however, is lower than the year-ago level of 7.61 per cent recorded in October 2020. With the impact of excise duty cut yet to reflect in the headline numbers, high core inflation — the non-food, non-fuel inflation component — and risks of high global commodity prices are expected to keep the inflation rate under pressure.